The individual health and financial decision-making processes of adults will be studied from a theoretical perspective built on cognitive and motivational constructs. Our theory, Bounded Subjective Expected Utility theory (BSEU), proposes that peoples' behavior is determined by their perception of the consequences that will result from different actions. The theory hypothesizes that peoples' perceptions of consequences are determined by knowledge (mental models) of what causes what. Furthermore, we propose that mental models determine peoples' beliefs about the likelihood and hedonic value (utility) of consequences. Two research approaches will examine BSEU as an explanation of peoples' life- long health and financial behavior: 1) Questionnaires will be used to measure peoples' mental models of health and finance, their perceptions of behavioral consequences, and their behavior in the natural environment. Latent variable structural equation modeling techniques will be used to examine the plausibility of causal interrelationships hypothesized by BSEU. Separate analyses are planned for different age and SES segments of the sample, we propose to study, in order to examine developmental and socio-cultural questions. 2) An experimental study will test the effects of manipulating peoples' mental models and perceptions of consequences of their financial behavior. Micro-computer based educational tutorials will be used to create the experimental manipulations. These studies will use a sample of 800 adults varying in age from 18 to 59 years selected from high and low SES groups. The long term goal of the project is to test and further develop a performance theory of volitional behavior and to create a foundation for developing educational interventions that may help all Americans enjoy healthful and financially sound old ages.